Pre 1933 Gold

Pre 1933 Gold

Historically, mankind has relied on various goods in order to more easily transport wealth to various markets. Shells, skins, gems and other portable items have served as a type of currency in different cultures. As world markets became integrated, the need for a universal medium of trade became more evident.

Gold: The World’s True Money

Because gold is limited, durable, divisible and portable, it naturally became the money of choice. These characteristics give stability to gold that few other substances enjoy, providing for a more convenient and efficient means of transporting wealth.

As standardization of gold prevailed in world economies, so did gold from certain locations. As early as Genesis 2:12, the gold of Havilah was noted as being of high quality. Lydia (modern day Turkey) is the first country known to have minted gold coins (7th century BC). Macedonian gold coins were well known in in the 4th century B.C. And, during the peak of the Roman Empire, nothing was more recognizable than the Roman aureus, depicting contemporary emperors.

In the case of Rome, after centuries of stability, the government attempted to overcome depleting wealth by diluting the gold content in their coins. Eventually gold was no longer used, corrupting their currency even as the once mighty Empire was decaying from within.

British sovereigns and Spanish doubloons were once readily recognized throughout the known world. Each of these coins was known for its purity and content. And each represented their native country, as a testimony of its wealth and power.

U.S. Gold

As the United States of America grew in prominence, so too did the recognition of U.S. gold. The first coins, minted in 1795, set the value of the U.S. dollar at 24 grains of gold, with a $20 coin weighing one troy ounce.

While the price of gold was changed from $19.39 to $20.67 in the 1830s, the value of the dollar relative to gold remained largely unchanged until 1933, when President Roosevelt ordered the systematic recall of all U.S. gold currency and bullion through executive order 6102. The following year the dollar was revalued to $35 per ounce of gold, resulting in one of the most aggressive transfers of wealth in U.S. history.

Yesterday’s Loss

The common gold currency of the United States, mostly the Liberty eagle and double eagle, St. Gaudens double-eagle and Indian Head gold eagle had gained worldwide recognition. However, in one stroke, these historical treasures were stripped from private hands. Some refused to surrender their gold, however, hiding it away or sending it to foreign shores for storage. And many of these coins had already made their way to Europe by the time the recall was issued.

Much of this recalled gold was melted into 100 and 400 ounce gold bars, however, the majority of the coins were not. From that day forward, whenever foreign countries cashed in their dollars for gold, they received coins calculated at one ounce per $20 gold piece. Since the actual gold content of these coins is 0.9675 ounces of gold, the U.S. Treasure had effectively, and quite dishonestly, put itself in a no lose situation.

Today’s Opportunity

Collections of pre-1933 gold still surface from time to time, often coming from estates and banks in Europe. Because of the historic value of these coins, they are highly valued by collectors. Since they are investment grade coins, there is no reporting requirement if you later decide to sell them, adding to their desirability for investors.

Depending upon the year and grade, some have substantial premium value, while others, having been circulated, can be obtained closer to gold’s spot price, while still maintaining enough premium to absorb volatility. Through our extensive contact network, Goldco Direct works diligently to provide investors with these wonderful pieces of history. In order to better understand the opportunities pre-1933 coins provide, please give one of our well-trained account executives a call today.

Call a Goldco Direct Account Executive & Get Started Today.

855-848-GOLD

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